Home values soften modestly: Prices are expected to edge slightly lower in early 2026 before stabilizing, with no sharp correction projected.
Sales activity improves: Lower mortgage rates should gradually bring sidelined buyers back, lifting transaction volume.
Rates drive momentum: Mortgage rate easing toward the low-6% range is the key catalyst for renewed demand.
Crash unlikely: Strong long-term demand and limited supply continue to protect the market from a major downturn.